HOLLAND – In a community where local leaders enthusiastically support tax incentives to encourage companies to invest in their businesses and create jobs, a City Council candidate is challenging how the city goes about approving those incentives.

Wayne Klomparens, a retired teacher who is running for an at-large seat on the council, spoke out Wednesday against the council’s approval of a 12-year, 50 percent tax abatement on a $7.26 million project for Benteler Aluminum, which plans to create 67 new jobs over the next year by expanding production of aluminum bumpers and other automotive structural components at its West 24th Street plant.

“They’re getting police and fire protection, they’re getting good roads, and they’re getting favorable rates on electricity,” said Klomparens, who won the August primary for the at-large council seat and faces former Holland school board president Scott Troeger in the November general election. “I think they have an obligation to support this community.”

The City Council unanimously approved the 12-year abatement. Klomparens favored granted Benteler a six-year abatement, saying the 12-year breaks should apply more for startup companies.

But city officials say without granting the incentives, companies are likely to take their business elsewhere.

“It is, in my mind, unilateral disarmament,” Mayor Kurt Dykstra said. “Holland Township isn’t going to (stop granting abatements), Grand Rapids isn’t going to do it, Kalamazoo isn’t going to do it, and certainly other states outside of Michigan aren’t going to. We need to continue to use the tools that are provided by the state of Michigan (to attract and keep business).”

The Benteler Group, a family-owned company based in Germany, acquired the Holland facility from previous owner Hydro Automotive in January of last year. The parent firm has facilities in 38 countries, according to its Web site.

The Holland plant currently employs 138 workers, and most of the 67 new employees are expected to be hired by the end of the year, said Elena Sgroia, the plant’s finance manager.

In addition to bumpers, Benteler Alumimum produces other aluminum-based products such as windshield frames and fuel tank rails for the automotive industry.

Even with the abatement, Benteler will pay more than $54,000 in new taxes to city government, the county and schools as a result of its investment. That’s on top of what the company already pays in taxes, Interim City Manager Greg Robinson said.

“It’s not a takeaway on the taxes they’re paying today. In fact, they’ll be paying increased taxes on their investment,” Robinson said.